China's onshore capital markets to top 100 trln USD amid "big bang": HKEX chief executive

HONG KONG, Jan. 19 (Xinhua) -- China's equity and bond markets combined are expected to surpass the 100-trillion-U.S.-dollar mark in about 10 years, chief executive officer of the Hong Kong Exchanges and Clearing Limited (HKEX) Nicolas Aguzin said Wednesday.

"That's like creating a capital market the size of the U.S. financial markets in a decade," Aguzin said in his first blog in 2022.

Continued growth in China's economy and significant changes in the financial sector will drive what Aguzin called a "big bang of finance," which is an ongoing once-in-a-generation structural change to global finance.

"I feel pretty confident that we are going to see China's onshore capital markets continue to expand in breadth and depth," he said.

China's capital markets in the past two years saw explosive growth, with the combined value of the onshore bond and stock markets growing from 18.6 trillion dollars to 30.7 trillion dollars between 2018 and 2020, he added.

Further reforms to open capital markets and drive yuan's internationalization will accelerate capital flows into and out of the Chinese mainland through Hong Kong, according to Aguzin.

"The stream of reforms introduced to China's financial markets in recent years has already begun the process by which the orbit of global markets has begun to steadily shift towards the East, and specifically China," he said.

Noting that Hong Kong is uniquely positioned for the "big bang of finance," Aguzin said he believes Hong Kong's role is more vital than it has ever been.

For years Hong Kong has been a conduit between East and West, a vital global hub supported by its deep talent pools, robust infrastructure, internationally-aligned regulatory regimes and practices, free-flow of capital, and transparent, open and globalized markets, he said.

"Hong Kong must remain nimble and responsive. It must look to make its markets ever more competitive and attractive," he said.